Technicals in The Spotlight For Wesdome Gold Mines Ltd (WDO.TO)

July 5, 2017Mary Jones

Investors have taken notice of Wesdome Gold Mines Ltd (WDO.TO) shares. They may be keeping a close watch on certain stock levels. A popular indicator among technical analysts that can help to measure the strength of market momentum is the Average Directional Index or ADX.

Strong Momentum?

At the time of writing, the 14-day ADX for Wesdome Gold Mines Ltd (WDO.TO) is standing at 11.24. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal while one greater than 25 would indicate a strong trend.

Relative Strength Spotlight

When looking at technical levels, traders should not overlook the RSI reading as it often can dictate if momentum has pushed past a key metric. 37.29, the 7-day stands at 27.42, and the 3-day is sitting at 11.80.

The Relative Strength Index (RSI) oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70.

Looking further at additional technical indicators we take note that 14-day Commodity Channel Index (CCI) is sitting at -201.98.

CCI Quick Facts

Used to Identify start of a trend

Used to Identify end of a trend

Alternative metric for spotting oversold/overbought territory

Relative Strength Spotlight

When looking at technical levels, traders should not overlook the RSI reading as it often can dictate if momentum has pushed past a key metric. The current 7-day RSI stands at 27.42, and the 3-day is sitting at 11.80.

The Relative Strength Index (RSI) oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70.

Looking further at additional technical indicators we take note that 14-day Commodity Channel Index (CCI) for Wesdome Gold Mines Ltd (WDO.TO) is sitting at -201.98.

CCI Quick Facts

Used to Identify start of a trend

Used to Identify end of a trend

Alternative metric for spotting oversold/overbought territory

Designed by Donald Lambert

Reading levels close to +100 point to potential overbought range while a reading close to -100 would indicate possible oversold territory.

Near Term M/A Update

Designed by Donald Lambert

Reading levels close to +100 point to potential overbought range while a reading close to -100 would indicate possible oversold territory.

Near Term M/A Update

Shares of Wesdome Gold Mines Ltd (WDO.TO) have a 7-day moving average of 3.09. Moving averages can help spot trends and price reversals. They may also be used to help find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends.

Under recent market conditions, it may be quite difficult to be overly bearish. Most signs seem to be pointing in the right direction as investors keep concentrating on superior returns from the stock market. At this point in time, investors may have to make the tough decision whether to be fully invested in the stock market, or keep some cash handy on the sidelines. As we have seen, there will be a few days or weeks where market action may spur some second guessing, but the bulls seem they are still going to keep running. Many investors may be crafting plans for when the good times inevitably come to an end. Being prepared for market changes may help weather the storm when it comes.